Key Points
- Gary Gensler, former SEC Chair, returns to MIT’s Sloan School of Management as a Professor of the Practice.
- Gensler’s controversial stance on cryptocurrencies has been a point of contention within the crypto industry.
Gary Gensler, who previously served as the Chair of the U.S. Securities and Exchange Commission, is set to return to MIT’s Sloan School of Management.
He will be assuming the role of a Professor of the Practice.
Gensler’s Roles at MIT
In his new role, Gensler will be part of both the Global Economics and Management Group and the Finance Group.
His work will encompass areas such as artificial intelligence, finance, financial technology, and public policy.
Gensler will also serve as the co-director of the FinTechAI at the Computer Science and Artificial Intelligence Laboratory, which is MIT’s largest research lab.
Before his stint as SEC Chair during the Biden administration, Gensler was already a part of MIT Sloan, serving as a Professor of the Practice from 2018 to 2021.
He also held the position of Chairman of the Commodity Futures Trading Commission under President Obama, where he oversaw the implementation of the post-2008 reforms of the $400 trillion swaps market.
Gensler and Cryptocurrency
Within the realm of cryptocurrency, Gensler is known for his stringent “Everything is a Security” stance.
This viewpoint has led to a strained relationship with Congress and other U.S. regulators, with Gensler critiquing bills that aim to provide a clearer regulatory framework for cryptocurrencies.
Gensler has often stated that most cryptocurrencies, with the exception of Bitcoin (BTC), should be classified as securities and therefore fall under SEC jurisdiction.
His strict regulatory approach has left many crypto projects in the U.S. in a state of legal uncertainty.
Gensler has also been resistant to the approval of spot Bitcoin ETFs, citing the need for investor protection and concerns about market manipulation.
However, in August 2023, a three-judge panel from the U.S. Court of Appeals for the D.C. Circuit ruled against the SEC’s refusal to allow Grayscale to convert its Bitcoin Trust into an ETF, deeming it “arbitrary and capricious”.
It was only in January 2024, under significant legal and political pressure, that the SEC finally gave its approval.
The return of Gensler to MIT has not been without criticism.
MIT graduate Devin Walsh expressed his frustration, labelling Gensler’s return as a “waste of time, tuition funds, and energy.”
Walsh, who developed a passion for crypto through MIT’s Digital Currency Initiative, viewed the move as a setback for students eager to support innovation.
